The EU27 chemical industry remains under pressure despite improving confidence
Despite improving business confidence and easing inventory pressures, the EU27 chemical industry remained under strain. Production declined by 2.0% between January and July 2026 compared to 2025, demand was weak, and structural competitiveness pressures continued to intensify. A broad-based and sustainable recovery has yet to emerge.
Performance across EU27 Member States remained highly uneven. Spain recorded production growth of 2.8%, while France stabilised, but output declined in most other major producing countries. Upstream segments remained under the greatest pressure, particularly ‘other organic basic chemicals’, polymers and crop protection products, while parts of specialty and consumer chemicals proved more resilient.
Compared to 2025, chemical sales increased by 2.1% between January and June, but this was mainly driven by producer prices rising 5.1%, rather than stronger production or demand. The increase in turnover therefore does not signal a recovery in physical activity.
Trade performance also weakened between January and July. Export values fell by 4.2% and imports by 3.1%, reducing the extra-EU27 chemical trade surplus by €2.2 billion to €21.4 billion. Lower exports to the United States and continued weakness in ‘other organic basic chemicals’ were the main drivers. Although the volume deficit narrowed, these reflected imports contracting faster than exports, rather than stronger EU competitiveness.
Overall, weak demand, falling production, upstream overcapacity and intensifying global competition continue to constrain the industry, while chemical growth remains increasingly concentrated in China.